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"Full shutdown" is achieved by doing precisely that in Windows8. If you want a proper reset, choose "restart".

"Shutdown" to most users means "turn the power off" rather than reset the internal state of the machine.

"Restart" means reset the internal state of the machine, and so it performs a full shutdown and reset.

I think you're crediting the average user with too much understanding. If the terms were completely new then there wouldn't be a problem. But everyone "knows" that shutdown and restart do the same thing, except that restart turns it back on again. Microsoft have to break that association, somehow, and the only way I can see to do that is to rename the options.